HARTSVILLE, SC - Sonoco (NYSE: SON) says increased lumber and plywood costs are leading it to raise surcharges to 13.4% on its nailed wood reels and 8.8% for plywood reels, beginning Jan. 1, 2013.
"Lumber and plywood pricing continue to rise against traditional downward trends normally seen in the late fall and winter," said Greg Powell, general manager, Sonoco Reels, in announcing the hike. Powell said lumber prices have increased for six consecutive weeks, reaching a new high. Plywood pricing has continued to rise due to tightening supply and improving demand as housing recovers.
"As a result, we must adjust our reel surcharges accordingly," Powell said. Sonoco Reel last raised prices in June.
Sonoco Reels made from nailed wood, plywood, poly-fibers, molded plastic and steel materials. are used by the wire and cable industry to serve the power transmission and distribution; telecommunications; commercial and industrial building; oil and gas; mining and marine industries.